Our guidance for 2014 is based on expectations of a continuation of slow and fragile macroeconomic growth and a continuation of low interest rate levels in our core markets.
Furthermore, the guidance is based on accounting figures adjusted for the transfer of Personal Banking and Business Banking activities in Ireland to the Non-core unit effective from 1 January 2014.
We expect total income above the 2013 level, with the increase driven by improvements in most income items. We expect low demand for loans, and lending volumes are thus likely to be only marginally higher.
Expenses are expected to be reduced to below DKK 23 billion. We expect expenses in the fourth quarter to be higher than in the previous quarters of 2014.
Impairments in our core activities are expected to be around DKK 3 billion, against our previous guidance of impairments below the 2013 level.
Non-core Ireland impairments are expected to be around DKK 1 billion.
On the basis of the satisfactory results for the first nine months of 2014, we expect net profit for 2014 to be in the range of DKK 11.5-13.5 billion, an increase from our previous guidance of a range of DKK 10-13 billion.
This guidance is generally subject to uncertainty and depends on economic conditions. Our trading income and insurance business income are particularly uncertain. The 2014 results for trading and insurance will depend greatly on developments in the financial markets and on whether Danica Pension can book the risk allowance and part of the balance on the shadow account to income.